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 |  Bizink  |  ERC,  H.R. 5376,  Inflation Reduction Act of 2022,  NYS PTET,  summer garden,  tax planning,  Weekly Take-Away

Weekly Update – August 12th, 2022

Week 6 seems to be a turning point, now I keep loosing my cane, I still hold it when I am out in the garden because I am a bit klutzy and the ground can be uneven, but it feels good to be back on two feet.  Enough talk about new hips, let’s talk about our summer harvest, are you growing tomatoes this summer, are they heirloom variety?  If so you have probably been invited to my house for lunch. We don’t really care if you stay or bring anything else (unless it’s dark chocolate bars).  My cukes are going wild, my parsley is plentiful (yes flat Italian variety), my banana peppers are growing well and I stocked up on extra virgin olive oil, great imported fetta and red onions.  We have the fixings for a great Greek or shepherd salad. The difference is lemon juice or red vinegar. Want to weigh in, stop by with your home grown tomatoes. Sorry limited photos this week as we chopped and ate!

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Today’s lunch on the chopping board

Of course we love the fresh mozzarella from our local deli and pair it with tomatoes, basil from the garden and a splash of extra virgin olive oil…

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Tomatoes, fresh mozzarella and basil

My blackberries continue to ripen as next year’s canes are shooting up

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Hoping you are all enjoying your summer.  This weekend I’m planning to read through the Inflation Reduction Act and then plant seeds for my fall crop of lettuce and other greens.

Weekly Take Away

It seems appropriate that our office adopted a weekly huddle format rather than a daily one.  For us this has been a great way to stay connected as most of us are working remotely.   The weekly huddle also gives us the opportunity to discuss progress on work projects and ask for help.  We also use the time to discuss how we use various software options within our standard processes and how they have been productive or what can we do to make improvements if needed. The following week we can exchange notes again; we see how we all may have different processes to reach the same end game or goal – some easier than others and came up with a plan of action to make our work not only easier but more effective.

TAX ISSUES/TAX PLANNING

Employee Retention Tax Credit (ERC) my July 2021 Post Edited for NOW!!!!

I know my clients have received these funds and are thrilled.  Last July and August we were writing letters to congress and waiting to hear more specifics.  Fast forward to August 2022, we accounting professionals have asked and been given more guidance regarding the ERC and have filed for these much needed and appreciated funds for our existing clients.  But what about our newly onboarded clients?  You know who you are, in many cases we are thrilled to review activity, hold interviews, examine payroll documents, evaluate financial statements, etc and identify opportunities for these businesses, our new clients.  I usually quote one of my long time clients who is also really funny (and you know who you are) “I have the best accountant, she sends me an invoice then she finds me funds to pay them, she and her staff are amazing.”

U.S. House Speaker Nancy Pelosi says U.S. House Will Pass the Inflation Reduction Act of 2022 Today:  H.R. 5376

In a letter to Democratic colleagues, Pelosi called the $430 billion climate, tax and healthcare bill approved by the Senate last weekend “life-changing legislation.”  Remember that many times tax policy is structured to incentivize certain behavior, let’s see what happens today with the expected vote.

I am already looking at commentary on the proposed bill and see the major provisions of the bill focus on tax breaks for green energy and health care, corporate taxes and funding the IRS. The main revenue raisers are a 15% minimum corporate tax, a 1% excise tax on stock buybacks, and estimated additional Internal Revenue Services collections resulting from the increased funding.

Mississippi State Now Allows for Pass Trough Entity Tax (PTET)

Mississippi House Bill 1691, Pass-through Entity Tax (PTET), provides certain individual taxpayers a useful workaround of the $10,000 State and Local Tax deduction limitation established by the federal 2017 Tax Cuts and Jobs Act. With the passing of this legislation Mississippi joins New York and over 20 other states in enacting such laws since the IRS released guidance in November 2020 essentially approving this workaround.

NYS Has Recently Sent Reminder Emails About the Extended Election for PTET

You may have received this reminder in your in box.  This is a great opportunity if your the numbers make sense.  Check out my blog post from July 29th for more detail…

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Tax Deadline Extended for Kentucky Storm Victims

The IRS announced last week that storm victims in parts of Kentucky now have until November 15, 2022, to file various individual and business tax returns and make tax payments. Details can be found here.

Consider Using Your Income Tax Refund to Buy Paper US Savings Bonds

In our office we say “any day we learn something new is a good day”, so I was really glad to learn about this option for IRS refunds from one of my clients.   We looked up the rules together and I accessed the Treasury Direct website to learn the details and then completed that client’s tax return using the appropriate forms.  These bonds are currently paying a good rate of interest that is tax free so a win win.

ECONOMY

Payrolls Increase in July

The Bureau of Labor Statistics reported on Friday that hiring in July was far better than expected, with payrolls increasing by 528,000. The surprising number is a sign of strength for the jobs market.

Workers in Only Two Industries Making Wages in Line with Rising Inflation

New figures show that only workers in the leisure/hospitality and retail industries are coming out ahead with their wages, after accounting for inflation. These sectors are also the only ones with staffing levels still far below pre-pandemic levels.

Stocks Fall After July Jobs Report is Better than Expected

The volatility continued last week, with the Dow Jones, S&P 500, and Nasdaq all slumping. Tech stocks were also down but energy and bank stocks were up, as investors tried to make sense of what a strong labor market means for the Fed’s rate-tightening campaign.

Current Market Causes Uptick in People Choosing to “Unretire”

Whether it’s money worries or just an unexplainable drive to keep working, more and more Americans are choosing to return to the workforce after retiring. Kiplinger has put together a guide to returning to the workforce.

High Hopes for a $3 Gallon of Gas

Gasoline prices have fallen for over 50 consecutive days, and could fall below $3/gallon this week. The lower price is welcome as more people than ever struggle amidst rising inflation rates and other costs.

GENERAL RESOURCES

We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are all in this together!

If you need help with your accounting, want to create a tax minimization plan, want to discuss your business growth plan or your finances, are concerned about retirement goals or need to be held accountable for your 90 day action plan, contact us for a complimentary discovery session or an appointment to just get started.

GENERAL RESOURCES

We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are all in this together!

If you need help with your accounting, want to create a tax minimization plan, want to discuss your business growth plan or your finances, are concerned about retirement goals or need to be held accountable for your 90 day action plan, contact us for a complimentary discovery session or an appointment to just get started.

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.

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